Eclipse 3.2 won't build project, compile, or run application. I didn't change any settings on Eclipse and didn't have this problem before. 2 things that I modified before this happened:
1. Added %JAVA_HOME%/bin;%JAVA_HOME%/jre/bin/client to PATH
2. Added xml-apis-1.0.b2.jar and xercesImpl-2.6.2.jar into %JAVA_HOME%/jre/lib/endorsed folder

Do you guys have any ideas? Any helpful comments would be appreciated... Thanks!!

!ENTRY org.eclipse.ui 4 0 2006-11-13 13:46:25.744
!MESSAGE Provider for javax.xml.transform.TransformerFactory cannot be found
!STACK 0
javax.xml.transform.TransformerFactoryConfigurationError: Provider for javax.xml.transform.TransformerFactory cannot be found
at javax.xml.transform.TransformerFactory.newInstance(Unknown Source)
at org.eclipse.debug.internal.core.LaunchManager.serializeDocument(LaunchManager.java:513)
at org.eclipse.debug.internal.core.LaunchConfigurationInfo.getAsXML(LaunchConfigurationInfo.java:348)
at org.eclipse.debug.internal.core.LaunchConfigurationWorkingCopy.writeNewFile(LaunchConfigurationWorkingCopy.java:209)
at org.eclipse.debug.internal.core.LaunchConfigurationWorkingCopy.doSave0(LaunchConfigurationWorkingCopy.java:196)
at org.eclipse.debug.internal.core.LaunchConfigurationWorkingCopy.doSave(LaunchConfigurationWorkingCopy.java:172)
at org.eclipse.debug.internal.ui.launchConfigurations.LaunchConfigurationTabGroupViewer.handleApplyPressed(LaunchConfigurationTabGroupViewer.java:1179)
at org.eclipse.debug.internal.ui.launchConfigurations.LaunchConfigurationsDialog.handleLaunchConfigurationSelectionChanged(LaunchConfigurationsDialog.java:931)
at org.eclipse.debug.internal.ui.launchConfigurations.LaunchConfigurationsDialog$4.selectionChanged(LaunchConfigurationsDialog.java:547)
at org.eclipse.jface.viewers.StructuredViewer$3.run(StructuredViewer.java:839)
at org.eclipse.core.runtime.SafeRunner.run(SafeRunner.java:37)
at org.eclipse.core.runtime.Platform.run(Platform.java:843)
at org.eclipse.ui.internal.JFaceUtil$1.run(JFaceUtil.java:44)
at org.eclipse.jface.util.SafeRunnable.run(SafeRunnable.java:149)
at org.eclipse.jface.viewers.StructuredViewer.firePostSelectionChanged(StructuredViewer.java:837)
at org.eclipse.jface.viewers.StructuredViewer.setSelection(StructuredViewer.java:1578)
at org.eclipse.jface.viewers.Viewer.setSelection(Viewer.java:384)
at org.eclipse.debug.internal.ui.launchConfigurations.LaunchConfigurationsDialog.doInitialTreeSelection(LaunchConfigurationsDialog.java:587)
at org.eclipse.debug.internal.ui.launchConfigurations.LaunchConfigurationsDialog.initializeContent(LaunchConfigurationsDialog.java:1034)
at org.eclipse.debug.internal.ui.launchConfigurations.LaunchConfigurationsDialog.createContents(LaunchConfigurationsDialog.java:434)
at org.eclipse.jface.window.Window.create(Window.java:426)
at org.eclipse.jface.dialogs.Dialog.create(Dialog.java:1124)
at org.eclipse.debug.internal.ui.launchConfigurations.LaunchConfigurationsDialog.create(LaunchConfigurationsDialog.java:363)
at org.eclipse.jface.window.Window.open(Window.java:785)
at org.eclipse.debug.internal.ui.launchConfigurations.LaunchConfigurationsDialog.open(LaunchConfigurationsDialog.java:1086)
at org.eclipse.debug.ui.DebugUITools$1.run(DebugUITools.java:375)
at org.eclipse.swt.custom.BusyIndicator.showWhile(BusyIndicator.java:67)
at org.eclipse.debug.ui.DebugUITools.openLaunchConfigurationDialogOnGroup(DebugUITools.java:379)
at org.eclipse.debug.ui.DebugUITools.openLaunchConfigurationDialogOnGroup(DebugUITools.java:321)
at org.eclipse.debug.ui.actions.OpenLaunchDialogAction.run(OpenLaunchDialogAction.java:80)
at org.eclipse.jface.action.Action.runWithEvent(Action.java:499)
at org.eclipse.jface.action.ActionContributionItem.handleWidgetSelection(ActionContributionItem.java:539)
at org.eclipse.jface.action.ActionContributionItem.access$2(ActionContributionItem.java:488)
at org.eclipse.jface.action.ActionContributionItem$5.handleEvent(ActionContributionItem.java:400)
at org.eclipse.swt.widgets.EventTable.sendEvent(EventTable.java:66)
at org.eclipse.swt.widgets.Widget.sendEvent(Widget.java:928)
at org.eclipse.swt.widgets.Display.runDeferredEvents(Display.java:3348)
at org.eclipse.swt.widgets.Display.readAndDispatch(Display.java:2968)
at org.eclipse.ui.internal.Workbench.runEventLoop(Workbench.java:1914)
at org.eclipse.ui.internal.Workbench.runUI(Workbench.java:1878)
at org.eclipse.ui.internal.Workbench.createAndRunWorkbench(Workbench.java:419)
at org.eclipse.ui.PlatformUI.createAndRunWorkbench(PlatformUI.java:149)
at org.eclipse.ui.internal.ide.IDEApplication.run(IDEApplication.java:95)
at org.eclipse.core.internal.runtime.PlatformActivator$1.run(PlatformActivator.java:78)
at org.eclipse.core.runtime.internal.adaptor.EclipseAppLauncher.runApplication(EclipseAppLauncher.java:92)
at org.eclipse.core.runtime.internal.adaptor.EclipseAppLauncher.start(EclipseAppLauncher.java:68)
at org.eclipse.core.runtime.adaptor.EclipseStarter.run(EclipseStarter.java:400)
at org.eclipse.core.runtime.adaptor.EclipseStarter.run(EclipseStarter.java:177)
at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
at sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:39)
at sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:25)
at java.lang.reflect.Method.invoke(Method.java:585)
at org.eclipse.core.launcher.Main.invokeFramework(Main.java:336)
at org.eclipse.core.launcher.Main.basicRun(Main.java:280)
at org.eclipse.core.launcher.Main.run(Main.java:977)
at org.eclipse.core.launcher.Main.main(Main.java:952)

!ENTRY org.eclipse.core.jobs 4 2 2006-11-13 15:46:35.228
!MESSAGE An internal error occurred during: "Building Workspace".
!STACK 0
javax.xml.transform.TransformerFactoryConfigurationError: Provider for javax.xml.transform.TransformerFactory cannot be found
at javax.xml.transform.TransformerFactory.newInstance(Unknown Source)
at org.eclipse.cdt.make.internal.core.scannerconfig.DiscoveredScannerInfoStore.saveDiscoveredScannerInfoToState(DiscoveredScannerInfoStore.java:217)
at org.eclipse.cdt.make.internal.core.scannerconfig.DiscoveredPathManager.updateDiscoveredInfo(DiscoveredPathManager.java:133)
at org.eclipse.cdt.make.internal.core.scannerconfig2.PerProjectSICollector.updateScannerConfiguration(PerProjectSICollector.java:206)
at org.eclipse.cdt.make.internal.core.scannerconfig.jobs.SCJobsUtil$2.run(SCJobsUtil.java:118)
at org.eclipse.core.runtime.SafeRunner.run(SafeRunner.java:37)
at org.eclipse.core.runtime.Platform.run(Platform.java:843)
at org.eclipse.cdt.make.internal.core.scannerconfig.jobs.SCJobsUtil.updateScannerConfiguration(SCJobsUtil.java:128)
at org.eclipse.cdt.make.core.scannerconfig.ScannerConfigBuilder.build(ScannerConfigBuilder.java:70)
at org.eclipse.core.internal.events.BuildManager$2.run(BuildManager.java:603)
at org.eclipse.core.runtime.SafeRunner.run(SafeRunner.java:37)
at org.eclipse.core.internal.events.BuildManager.basicBuild(BuildManager.java:167)
at org.eclipse.core.internal.events.BuildManager.basicBuild(BuildManager.java:201)
at org.eclipse.core.internal.events.BuildManager$1.run(BuildManager.java:230)
at org.eclipse.core.runtime.SafeRunner.run(SafeRunner.java:37)
at org.eclipse.core.internal.events.BuildManager.basicBuild(BuildManager.java:233)
at org.eclipse.core.internal.events.BuildManager.basicBuildLoop(BuildManager.java:252)
at org.eclipse.core.internal.events.BuildManager.build(BuildManager.java:285)
at org.eclipse.core.internal.resources.Workspace.build(Workspace.java:271)
at org.eclipse.ui.actions.GlobalBuildAction$1.run(GlobalBuildAction.java:183)
at org.eclipse.core.internal.jobs.Worker.run(Worker.java:58)